Swedbank CEO Says `So Far, So Good' About Negative Rates

The CEO of State Bank discusses the bank's focus on execution and strategy, particularly in the retail banking sector across Sweden and the Baltic countries. The conversation covers challenges posed by negative interest rates and credit demand, with a focus on mitigating these through increased mortgage volumes. The CEO also addresses the impact of negative rates on institutional clients and the bank's return targets, emphasizing the importance of high profitability and cost efficiency. Board decisions on dividend payout ratios and financial targets are also highlighted.

What is the main focus of the CEO for the State Bank?

• Reducing the workforce

• Increasing interest rates

• Execution and operationalizing the IT agenda

• Expanding into new markets

How is the bank coping with negative interest rates?

• By increasing corporate lending

• By closing branches

• By passing negative rates to all customers

• By reducing mortgage volumes

What is the bank's approach to negative rates for retail deposit clients?

• Reducing deposit amounts

• Leaving them out for core customers

• Passing them on to all clients

• Increasing deposit rates

What is the bank's return target mentioned in the interview?

• 20%

• 15%

• 12%

• 10%

What is the dividend payout ratio target for the bank?

• 75%

• 60%

• 80%

• 50%